TORONTO – TMAC Resources has completed a bought deal financing worth $92 million. The offering included 3.98 million common shares from the company and 1.33 million shares from Resource Capital Fund VI. Each share was priced at $15.10.
Gross proceeds were approximately $80 million, of which $60 million went to TMAC and $20 million went to Resource Capital. The underwriters also exercised a 15% over-allotment that raised a further $12 million for Resource Capital. Resource Capital is now the 30.9% owner of TMAC. Newmont Mining Corp. also purchased 1.16 million shares and is now TMAC’s second largest shareholder at 29.2%.
TMAC intends to use its share of the net proceeds to advance development of the BTD zone at the Doris deposit, part of its Hope Bay gold project in Nunavut. The project has measured and indicated resources of 4.5 million oz of gold at an average grade of 9.2 g/t Au and inferred resources totalling approximately 1.4 million oz of gold at an average grade of 7.4 g/t Au. Proven and probable reserves contain 3.5 million oz of gold at an average grade of 7.7 g/t Au.
More information about TMAC is available at www.TMACresources.com.